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Concerning update regarding Reading and Southend over their financial situation

A concerning update regarding Reading and Southend United over their financial situation has emerged according to reports this week.

Financially troubled Southend United are yet to pay non-playing staff their November wages after players received their salaries late by one day.

This makes it the second successive month the National League side have struggled to meet their payroll.

Just two weeks earlier, they received a loan from its supporters to ensure non-playing staff could be paid wages for the previous month.

The Essex based outfit also face a winding-up petition from HM Revenue and Customs, with the hearing adjourned until the 18th of January 2023.

Manager Kevin Maher said to the media that he will not let off the field issues disrupt his focus, saying: “It’s difficult.

“We want to focus on the football and control what we can control.

“The players trained ever so well today and we will be focused for Saturday.”

Maher wants to be able to add to his squad, but can’t due to a transfer embargo caused by a winding up petition issued by HMRC.

“The things I can control are within the training ground,” said Maher.

“We’ve got to focus on what we can do and focus on the football.

“That’s what we do and this is a good environment for the players to work in.

“They’re brilliant in terms of how they are every day and their application in training and wanting to improve.

“That’s our focus and come Saturday it’s about putting the performance in and shouting everything else out.”

Despite the club’s latest problems, BBC Essex Sport state that youth-team players were paid on time thanks to funding they received from the English Football League for its academy.

The Shrimpers Trust will continue their fundraising efforts to help boost cash-strapped Southend United.

Having already loaned £40,000, before also teaming up with other supporter groups to help raise £20,000 for the club, the Trust are now looking into alternative ways to generate funds and are keen for supporters to play their part.

A Trust statement said: “Southend United’s current cash flow problems are well documented, with our supporter groups currently running the GoFundMe initiative in support of our amazing off field teams.

“These folk are the heart and soul of SUFC and they continue to work hard in the face of adversity behind the scenes.

“In addition, the Trust board sanctioned a loan to the football club of £40,000 earlier in November.

“We have all been humbled by the progress that has been made so far in raising funds and the generosity shown by everyone that has donated during such difficult financial times.

“The reality of the situation is however that the combined weight of the Trust loan and donations made so far will not be enough to pull our beloved football club through these difficult times.

“The supporter groups have already confirmed a belief that the club will remain in a precarious financial position with a need to explore methods for continuing to raise essential funds over the next few months.”

The Trust will therefore be launching new initiatives, including a sporting memorabilia auction.

The Trust add: “In tandem with the work that the supporter groups continue to do in support of the club, the Trust is planning to launch a number of fundraising initiatives and we are looking for the whole Southend United community to get involved to play their part no matter how large or small.

“It really is a case of every little helps!

“We are currently asking for supporters to donate any sports memorabilia which is surplus to requirements and that might be suitable to include in one of the following, auction evening, programme and memorabilia fair and online auction or eBay sale.

“It can be anything that is sports related so our call to fans is not solely limited to Southend United memorabilia.”

The statement added: “We are asking that all supporters, if possible, search out an item for donation to what is a cause very close to all our hearts.

“We will work to ensure that all money raised is ringfenced and donated to a specific cause to help the club.

“Please have a search of those cupboards, turn the house upside down and donate what you can.”

Southend have also struggled to pay office staff on time, leading to the Trust launching a fundraising scheme.

Meanwhile, Reading first-team players and staff received only 80% of their wages last month, with under-21s not getting anything due to what sources within the club describe as an “unforeseen and temporary delay to the club receiving its regular funding”.

Officials at the Royals have tried to reassure the extended squad that the issue will be resolved by “the end of the week”, but it has had staff frustrated.

While players and coaches are aggravated at only being given 80% of their pay from the last wage packet, there was particular concern for young players receiving nothing.

Reading haven’t offered any official statement as they don’t want to comment on financial matters.

The Independent has been informed that Reading are wanting to resolve the matter, and add everyone will receive full pay by the end of the week.

Reading still find themselves under a transfer embargo until the end of the season, after restrictions were placed on them by the EFL at the start of the 2021-22 campaign for breaching profit and sustainability guidelines.

SEE MORE: Fans in shock as Scunthorpe issue statement with significant U-turn on club’s future

This is what Twitter users said amid the concerning update regarding Reading and Southend over their financial situation…

ON READING:

@scottneedham88: @EFL same energy as Derby please

@callumdcfc1: EFL witch hunt then…..

@WAFCRob: Watch this get less attention than our case despite being way worse

@clarks1481: Here we go again

@Andrew_Shrimper: We’re not alone.

@BrianDa67696046: 😱 This is concerning. Hopefully extra funding will be sent from. Hong Kong to cover several months wages.

@Readingfanman: If I worked as any employee of the club I’d be onto HMRC for deduction of wages by this point. Also wouldn’t surprise me if this breaks part of the ‘business plan’ and the points suspension can be applied potentially

@TheIrishKieran:
Shane Long picked Reading over
higher wages in the Middle East.
(at least according to reports)
Jeff Hendrick also on loan there.
The risks of playing in the EFL…

@jaidan___: ffssssssssss joke club man

@AndyPreston96: Hopefully this is resolved asap. The last thing the club needs is more financial issues. #readingfc

ON SOUTHEND

@TheDB30: Absolutely horrible what’s happening at Scunthorpe and Southend. Players and staff have bills to pay and food to put on the table, nobody deserves not to be paid on time, hope both clubs can find a solution soon.

@RogerSWilson: Time for an Independent Regulator for football and formal involvement of fans and the community in the governance of football clubs – as recommended by the excellent Tracey Crouch report and accepted by Government @tracey_crouch

@Luke3Bsea: Run upto Christmas, cost of living crisis, haven’t paid their lowest paid employees. Ridiculous club.

@LiamK1998_: Now Scunthorpe United fans got their club back now it’s Southend United’s turn to get new owners

@KEYSGK1: Feel sorry for the players and staff, pretty much everyone of them deserve to be treated better than how they are being treated at the moment! #ronthe🐀out

@BluesLeigh: 2 months for some staff. Absolutely pathetic Ron Martin needs to go NOW

@preshedge2: Late once again! Sick of the same thing

@AChesham: Just the players?? What about the staff

@stevecaton66: I thought the £100k loaned was only for staff wages. Where is that money?

@SibthorpeMark: Trouble is we have been here on and off for the last 4 seasons. Owner full of promises at the beginning of every season but half way through we are going to court for unpaid tax and people not paid

@Mikeydagger: Any player management team who signs for Southend knowing that staff behind scenes are not being paid deserve all they get sorry . You got a youth team kids with xmas coming going on strike due to no salaries ? Poor

@mattysufc: Still not good enough.

@leog216: Jesus Christ 🤦🏼‍♂️🤦🏼‍♂️🤦🏼‍♂️

@keepsafepat: How can a club not pay wages or its taxes yet, still expect to build a new stadium.

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